Stratford, Conn., town officials might merge Stratford's $95 million pension obligation trust with its $28 million pension plan, which could lead to manager searches by next spring, said Dean Moore, director-finance and pension plan treasurer. The obligation trust has 69% of its assets in fixed income and 31% in equity, in compliance with an old state statute, Mr. Moore said. Town officials, feeling that fixed income is now "not earning a great deal for us," want to merge the trust assets with the pension plan, which is entirely invested in equity. The combined asset allocation would likely be 55% equity and 45% fixed income. Town officials could decide in June or July whether to proceed with the merger.
Actuary Milliman USA and consultants Dahab Associates and Independent Bond and Investment Consultants will assist.